SJVNL's Q1 profit up 8.87 percent

Satluj-Jal-Vidyut-Nigam-LtdShimla, July 30 : With over 11 percent increase in power generation from its 1,500 MW Nathpa Jhakri plant - India's largest hydro project, the Satluj Jal Vidyut Nigam Ltd (SJVNL) recorded an 8.87 percent increase in profit after tax for this fiscal's first quarter, the company said Tuesday.

The public sector SJVNL's net profit has increased to Rs. 343.24 crore from Rs. 315.27 crore earned during the same period in the last financial year, it said in a statement here.

While the company's total income increased 7.18 percent from Rs. 557.26 crore to Rs. 597.29 crore, the profit before tax grew 10.29 percent from Rs. 379.58 crore to Rs. 418.64 crore.

Resultantly, the company's earning per share during the quarter has increased from Re. 0.76 to Re. 0.83.

The quarterly results were finalised at the board meeting held in New Delhi Tuesday.

According to the company, the Central Electricity Regulatory Commission has revised the return on equity in respect of the run-of-river-generating stations with pondage from 15.5 to 16.5 percent which has resulted in higher returns to the company and will also have positive impact on the financial results of the company in future too.

SJVNL is a joint venture between the central and the Himachal Pradesh governments. The former holds 74.5 per cent stake, while the remaining 25.5 per cent is held by the state government.

However, the central government sold 10 percent equity in May 2010.

SJVNL's maiden project is located in Kinnaur district that started generation in 2004-05.

Its second mega hydropower project, 412 MW Rampur hydroelectric project in upper Shimla will be completed in this fiscal.

It is also executing one project each in Nepal and Bhutan. (IANS)